Zillow, which operates a leading online real estate marketplace in the US, raised $70 million by offering 3.5 million shares at $20, above an already upwardly revised range of $16 to $18. The company had initially proposed a price range of $12 to $14. Zillow, which is led by a team that helped create leading travel web site Expedia, has seen its revenue growth accelerate in recent quarters (including 111% growth in the most period) as real estate agents and consumers increasingly gravitate to its consumer-centric model and popular mobile apps. Zillow's venture backers include Technology Crossover Ventures, Benchmark Capital and PAR Investment, two of which purchased additional shares at the IPO price.
Zillow will open for trading Wednesday on the NASDAQ under the symbol Z. Citi acted as the lead manager on the deal. Allen & Company, Pacific Crest, ThinkEquity and First Washington served as co-managers.
Zillow's pricing, which reflected a 54% premium to the midpoint of its originally filed range, is the latest in a string of fast-growing Internet companies tapping the US public markets at a time of strong investor demand. Recent US Internet and tech companies to price well above their originally filed price range include online radio provider Pandora (P; 100% above range), flash storage company Fusion-io (FIO; 36%) and online professional network LinkedIn LNKD; 34%). The last successful Internet IPO was vacation rental portal HomeAway (AWAY), which priced at the end of June at the high end of its price range and soared 49% in its market debut. HomeAway closed Tuesday at $41.41. 53% above its offer price.
